Audit 409479

Criteria:Uniform Guidance requires the auditee to submit the reporting package and data collection form to the Federal Audit Clearinghouse within the required timeframe. Condition: The City did not submit the prior-year reporting package to the Federal Audit Clearinghouse by the required due date. Cause: The City did not maintain adequate controls and monitoring procedures to ensure compliance with federal reporting deadlines. Effect: The City was not in compliance with Uniform Guidance reporting requirements related to timely submission of the reporting package.Questioned Costs: None. Recommendation: The City should implement procedures to monitor federal reporting deadlines and ensure timely submission of future reporting packages. Views of Responsible Officials The City acknowledges the finding. Management relied on information received from the Arkansas Natural Resources Commission indicating certain funds were considered state funds and therefore not subject to federal reporting requirements. Subsequent clarification determined the expenditures were required to be included in the Schedule of Expenditures of Federal Awards and the related reporting package.The City has implemented additional procedures to review grant agreements, Assistance Listings, and funding source documentation for all grant-funded projects to ensure federal awards are properly identified and reported timely in future periods.

U.S. Environmental Protection Agency ALN 66.468 — Drinking Water State Revolving Fund Cause:The City did not maintain adequate monitoring controls to ensure all labor classifications utilized on federally funded construction projects were included in the applicable wage determination or properly submitted for conformance approval.Effect:The City was not in compliance with Davis-Bacon requirements related to labor classifications and conformance procedures. Based on procedures performed, no indication was noted that affected workers were paid below applicable prevailing wage rates.Questioned Costs:None identified.Recommendation:The City should strengthen monitoring procedures over federally funded construction projects to ensure all labor classifications utilized by contractors and subcontractors are included in the applicable wage determination or properly submitted for conformance approval before work is performed.Views of Responsible Officials.The City relied on the project engineer and contractors to monitor compliance with Davis-Bacon labor classification requirements and was not aware that certain labor classifications utilized on the project were not included in the applicable wage determination or submitted for conformance approval. The City will strengthen monitoring procedures over federally funded construction projects by reviewing certified payroll reports and labor classifications more closely and coordinating with project engineers and contractors to ensure any additional classifications are properly submitted for approval when required.